SBI MODS scheme: Earn FD interest with ease of early withdrawal

State Bank of India has introduced a fantastic scheme for its customers called the Multi Option Deposit Scheme (MODS). It's a better investment option than a Fixed Deposit. Let's find out more details about this scheme. 

Everyone makes fixed deposits to earn a steady income through interest. To attract investors, many banks offer high interest rates on FDs. But State Bank of India, a public sector bank, offers many investment schemes along with profitable fixed deposits. 

SBI, which has so far offered excellent FD schemes to its customers, has brought another super scheme. The name of this scheme is Multi Option Deposit (MOD) Scheme. In this, customers can set up fixed deposits in addition to their savings or current accounts. By doing this, the required amount can also be withdrawn from these deposits in case of emergency. Then you can also get interest on the remaining deposit.

The good facility in SBI MODS is that fixed deposit interest is available in this. Another good thing is that those who have invested in this scheme can withdraw money in advance. There is no need to pay any penalty for doing so.

Money can be withdrawn from this scheme through ATM or check just like withdrawing money from a savings account. This is because this scheme is linked to your savings or current account.

The main difference between a fixed deposit and a MODS scheme is that if an FD is stopped before maturity, the entire amount is returned, but a fine has to be paid. Not so in MODS. Money can be withdrawn as needed. The bank pays interest on the remaining money.

In SBI MODS, money should be deposited and withdrawn in multiples of 1000 rupees. Money can be withdrawn any number of times.

There are many benefits to the SBI MODS scheme. Investments can be made for 1 to 5 years. Interest rates vary depending on the term. There is additional interest for senior citizens. Nominee facility is also available.

MODS account can be transferred to another branch. However, a minimum balance must be maintained in the savings account attached to the MODS scheme. Tax has to be paid on the interest earned.